Dixon Technologies, the leading electronics manufacturer, has entered into a binding agreement with Singapore’s Q Tech group to acquire a 51 percent stake in its India business. The company is looking to expand its camera and fingerprint module manufacturing business through the proposed majority acquisition of Q Tech India.
In an exchange filing, Dixon Technologies said that it will carry out the acquisition via a combination of primary and secondary investments. The total amount of the transaction hasn’t been disclosed by the company.
What will the acquisition bring on table for Dixon?
Dixon said that the majority acquisition of Q Tech India will give the company access to technology, high precision manufacturing and will also provide a strong talent pool. The acquisition will enhance the capabilities of Dixon Technologies in manufacturing critical components and help its expansion into the component market.
“Acquiring majority stake in Qtech India is a major step forward in Dixon’s journey foraying into development and production of camera modules and fingerprint recognition modules across mobile handsets, IoT devices and automotive applications thereby strengthening backward integration plans of the Company,” says Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies.
The latest acquisition by Dixon comes just a week after the formation of a joint venture with Signify Innovations (formerly Philips Lighting India) on July 8. The two companies formed a JV to carry out original equipment manufacturing (OEM) business for lighting products and accessories.
Dixon Tech share movement
On Wednesday, Dixon Technologies’ share closed at Rs 15,804, down by 0.59 percent. However, in the last month, the company’s stock has gone up by 10.42 percent. Dixon’s stock has been one of the most sought-after stocks on the share market. In the last year, it has gained 24.64 percent on the market.